www.ChinaSourcingReports.com

HANOI

Laos

Thailand

Cambodia

Ho Chi Minh City

China

VIETNAM

Dong Nai

Da Nang

Vietnam supplier profi lesDetailed profi les of 34 suppliers with verifi ed manufacturing and export credentials

Product gallerySpecifi cations and full-color images of 138 top-selling export products ranging from beds to outdoor sofa sets

Industry trendsCoverage of current issues, plus insights into supply centers, products and pricing

October 2012US$150

Wooden & Wicker FurnitureEssential sourcing intelligence

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Global Sources is off ering this series of Developing Country Sourcing Reports as part of its corporate social responsibility undertakings in partnership with the Hinrich Foundation, a philanthropic development organization whose mission is promoting sustainable global trade.

The aim is to give international buyers new sourcing opportunities from experienced exporters, generating orders and creating lasting jobs in developing economies.

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www.ChinaSourcingReports.com 3

WOODEN & WICKER FURNITURESupplier capability in Vietnam

Revitalized demand from traditional markets and growing popularity in new overseas destinations are pushing the wooden and wicker furniture industry to become one of Vietnam’s most important export sectors.

Revenue in recent years has shown remarkable development that the country has become the largest furniture producer in Southeast Asia and one of the five biggest worldwide.

The gradual recovery of the US economy is the principal factor affecting the industry’s expansion. In addition, the Asia-Pacific region is increasingly replacing the EU as the sector’s secondary market.

The industry has a number of competitive advantages that help contribute to its growth. Some of these are low labor cost, high degree of craftsmanship and strong OEM capability.

Objective, methodology & scope

1. The majority of featured suppliers forecast export prices of wooden and wicker furniture to increase within the next six months due to surging raw material expenditure. A considerable minority will keep quotes unchanged to ensure competitiveness in attracting new customers from emerging markets.

2. Foreign revenue over the coming six months is widely projected to increase as a result of more intensive marketing efforts. Many suppliers also intend to capture greater buyer interest by revitalizing their product designs.

3. Most companies expect releases in the next 12 months to mainly feature elaborate styles with intricate embellishments to address the growing demand for such pieces.

Key findings

Executive Summary

In this report

• 15 in-depth company profi les• 19 short company profi les• 138 top-selling export products• Supplier demographics• Supplier survey• Industry statistics and charts

This Vietnam Sourcing Report is part of a series designed to provide buyers with information on new products from export manufacturers in supply markets that specialize in handmade merchandise.

The Developing Country Sourcing Report series is part of Global Sources’ corporate social responsibility initiatives. It is offered in conjunction with the Hinrich Foundation, whose mission is promoting sustainable global trade. One of its objectives is to help create jobs in developing Asia through export promotion.

To produce this report, large, midsize and emerging manufacturers, all with substantial export experience, were surveyed. The selection of suppliers is designed to reflect the composition of the industry in Vietnam in terms of geographic location, materials used and range of products offered.

For in-depth profiles, our researchers visited the facilities of each company and interviewed senior executives who discussed their recent performance and provided forecasts for the next 12 months. All other makers in this report were either visited or contacted by phone.

In each case, companies were required to answer specific questions designed to verify their manufacturing and export credentials, including a breakdown of exports by product type and market. Suppliers also participated in a survey designed to provide insight into the industry.

This report covers different types of wooden and wicker furniture available in Vietnam, including living room, bedroom, dining and outdoor pieces. Each product category has its own price guide that describes features of low-end, midrange and high-end models.

The Industry Overview section discusses key issues affecting export manufacturers. It provides insight on the composition of the industry and elaborates on the important supply centers within Vietnam.

The Products & Prices section details the features and price ranges of wooden and wicker furniture. It also examines the design and manufacturing processes, main materials used, and sourcing centers where components are procured.

Emphasis on basic furniture will also remain important as a significant volume of orders are done on OEM basis.

4. The inadequate domestic supply of wood is the most critical challenge facing the industry. Suppliers are compelled to import raw materials, raising production costs. In addition, stringent policies enforced by key overseas markets on wooden products is causing additional burden to furniture manufacturers.

5. There are several sourcing centers throughout the country. The most important ones are located in the Red River Delta, South Central Coast and Southeast regions. A number of factors provide these areas distinct advantages in the production of furniture.

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4 Vietnam Sourcing Reports

CONTENTS

Contents

Disclaimer: Any recommendation contained in this report may not be suitable for all investors or businesses. Moreover, although the information contained in this report is obtained from sources believed to be reasonably reliable, the accuracy or completeness of such information cannot be guaranteed. The author and the publisher of this report (and the publisher’s affi liates, agents, sales representatives and service contractors) do not make any representation or warranty whatsoever (whether express or implied) in relation to any of the contents of this report (including any information, opinion, recommendation or conclusion contained in this report) (collectively, “Contents”), whether as to the accuracy, completeness, quality, fi tness, suitability or reliability of such Contents (or any portion thereof ) or otherwise, and shall not be liable under any circumstances whatsoever for any error, omission, defect or defi ciency in, or for any use of or reliance on, such Contents (or any portion thereof ).

All product images are provided by the companies interviewed and are for reference purposes only. Those product images featuring products with trademarks, brand names or logos are not intended for sale. Products that are not the specifi c topics of editorial articles are shown for illustrative and/or demonstrative purposes only. We, our affi liates, and our affi liates’ respective directors, offi cers, employees, representatives, agents or contractors, do not accept and will not have any responsibility or liability for product images (or any part thereof ) which infringe on any intellectual property or other rights of a third party.

Copyright 2012 Trade Media Limited. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Trade Media Holdings Limited and Trade Media Limited is prohibited.

Published by Publishers Representatives Limited (on behalf of Trade Media Limited)4th Floor, Century Yard, Cricket Square, Elgin Avenue, P.O. Box 32322 SMB, George Town, Grand Cayman, Cayman Islandsc/o 22/F Vita Tower, 29 Wong Chuk Hang Road, Aberdeen, Hong Kong

ISBN 978-988-15980-4-2

EXECUTIVE SUMMARY .............................................................................................................................................................................................. 3Key fi ndingsObjective, methodology & scope

INDUSTRY OVERVIEW ............................................................................................................................................................................................. 11 Exports

Products & prices ...................................................................................................................................................................................................... 13Production & export statisticsPrice guides

Supplier survey ......................................................................................................................................................................................................... 15Export pricesExport salesExport marketsMajor challengesR&D focus

SUPPLIER PROFILES .................................................................................................................................................................................................. 19Supplier matrix: Comparison of supplier location, sales revenue & export capability Profi les of 34 verifi ed suppliers

PRODUCT GALLERY .................................................................................................................................................................................................. 69Living room furnitureBedroom furnitureDining & kitchen furnitureGarden & outdoor furniture

CONTACT DETAILS .................................................................................................................................................................................................... 95

Sample page only...

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...................................................................................ue & export capability export capability

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www.ChinaSourcingReports.com 11

Industry Overview

Industry Overview

The wooden and wicker furniture industry is progressively becoming one of Vietnam’s largest export earners, as evidenced by increasing demand from key destinations abroad.

Foreign revenue from wooden products, and rattan, bamboo, rush and carpet items, the two segments under which the government categorizes furniture, has increased by an average of 25 percent annually since 2009. Sales jumped from $3.6 billion in 2010 to $4.2 billion last year. As of July 2012, combined income from the two classifications is the sixth-highest among local industries.

The sector’s marked improvement is a result of the recovery of major markets, specifically the US. Orders from this country climbed 3 percent in 2011. Shipments to the Asia-Pacific region, particularly Australia, China and Japan, have likewise increased over the past 12 months.

These developments have enabled Vietnam to become the largest furniture exporter in Southeast Asia last year, according to the ASEAN Furniture Industries Council. Furthermore, data from the International Trade Centre ranks the country as the fifth-biggest supplier in the world as of 2011.

The US is the sector’s primary market

as it accounted for $1.5 million last year. The EU is another significant destination, contributing $489,000 to total revenue. The five leading markets in the association are the UK, Germany, France, the Netherlands and Italy.

Japan is the most important destination in the Asia-Pacific, absorbing shipments worth $282,000.

Export growth is forecast to continue over the next 12 months as more clients recover from the global economic crisis. Indicative of this is the finding from the General Statistics Office of Vietnam that foreign sales from January to July this year have totaled $2.6 billion. This represents an 18 percent surge from the same period in 2011.

International demand for furniture is estimated to go up 3 percent, according to a number of industry trade associations. This is driven by increasing orders from emerging destinations such as the Middle East, Africa and South America. In addition, the US has imposed an anti-dumping tariff on China-made pieces, opening up opportunities for Vietnam manufacturers to further expand their client base in that country.

Competitive advantagesThe industry has several strengths contributing to its development.

The sector’s primary advantage is low labor cost, which is a significant factor attracting foreign investors to Vietnam. Enterprises set up manufacturing facilities in the provinces of Bac Ninh, Dong Anh, Di An, Binh Duong, Vinh Cuu and Dong Nai, which are classified under Regions II and III in terms of basic salary rates. Wages in these places are 12 to 29 percent less than those in Region I, which comprises more industrialized areas such as Ho Chi Minh City.

A high level of workmanship also propels the industry. Suppliers hire skilled artisans from craft villages who have mastered various manual production processes such as carving intricate details and applying lacquer on small pieces of trimming. These complex designs help differentiate local makers from those in competing countries that offer lower prices.

The sector, furthermore, has strong OEM capability. Most manufacturers are able to customize pieces as per buyers’ specifications. A number of companies use the latest graphics software and CNC machines to accurately create samples.

Another advantage of the industry is its ability to comply with international policies and standards, particularly the Forest Stewardship Council. The

Exports

Rattan, bamboo, rush & carpet products$ million

2010 2011 2012

203 201

122

Wooden products$ billion

Note: 2012 data from January to July

Source: General Statistics Office of Vietnam

2010 2011 2012

3.4

4.0

2.5

Markets2011

North America61%

EU 18%

Non-EU 2%

Middle East 1%

Asia- Pacific 17%

Other 1%

Includes HS codes 940340, 940350, 940360, 940370, 940381 and 940389

Source: International Trade Centre

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20 Vietnam Sourcing Reports

Supplier Profiles

*CompanyIn-depth profile

Year established

Head office location

Ownership Factory location(s)

Full-time employees

Part-time employees

ISO certified

Alpha 2004 Tan Uyen (Binh Duong)

Locally owned

Tan Uyen (Binh Duong)

650 50 No

Anh Khoa 2002 Di An (Binh Duong)

Locally owned

Thu Duc (Ho Chi Minh City)

400 No

* Anh Quoc 2009 District 12 (Ho Chi Minh City)

Locally owned

Bien Hoa (Dong Nai)

250 300 No

BMC 1990 Quy Nhon (Binh Dinh)

Locally owned

Quy Nhon (Binh Dinh)

500 400 No

Chanh Dai 2000 Hoa Thanh (Tay Ninh)

Locally owned

Hoa Thanh (Tay Ninh)

165 No

* Gia Man 2008 District 12 (Ho Chi Minh City)

Locally owned

Thuan An (Binh Duong)

50 100 No

Hiep Luc 1980 Go Vap (Ho Chi Minh City)

Locally owned

Bien Hoa (Dong Nai)

200 500 No

* Hoang Ha Joint 2001 Van Lam (Hung Yen)

Locally owned

Van Lam (Hung Yen)

60 30 Yes

Hoang Phat 1988 Quy Nhon (Binh Dinh)

Locally owned

Quy Nhon (Binh Dinh)

800 Yes

Hoang Trang-Hoang Ha

2004 Quy Nhon (Binh Dinh)

Locally owned

Quy Nhon (Binh Dinh)

700 No

* Hong Phuong 2000 Me Linh (Hanoi)

Locally owned

Me Linh (Hanoi)

300 No

* Lien Thang 2006 Thai Binh (Thai Binh)

Locally owned

Thai Binh (Thai Binh)

200 500 No

Living Bamboo 1999 Phu Nhuan (Ho Chi Minh City)

Locally owned

Cu Chi (Ho Chi Minh City)

60 No

* Lotus Handicraft 2006 Thuan An (Binh Duong)

Locally owned

Tan Uyen (Binh Duong),

Bien Hoa (Dong Nai)

300 50 No

MG Quy Nhon 2000 Quy Nhon (Biinh Dinh)

Foreign-invested

Quy Nhon (Binh Dinh)

300 200 No

My A 1989 Ba Dinh (Hanoi)

Locally owned

Long Bien (Hanoi)

150 20 No

My Tai 1998 Quy Nhon (Binh Dinh)

Publicly listed

Quy Nhon (Binh Dinh)

850 Yes

* New Zealand Pine 1999 Di An (Binh Duong)

Foreign-invested

Di An (Binh Duong)

380 No

Nghia Son 2006 District 9 (Ho Chi Minh City)

Locally owned

Vinh Cuu (Dong Nai), Quy Nhon (Binh Dinh)

650 No

SUPPLIER MATRIX

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20062006 Thai BinhTha(Thai (Th

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26 Vietnam Sourcing Reports

Supplier ProfileSupplier Profiles

Capability

Contact details

Anh Quoc Co. Ltd

Annual sales $350,000Share of total sales 70%Annual export sales $350,000Total monthly capacity 30,000 piecesAverage monthly output 27,000 piecesCapacity utilized 90%Average monthly exports 27,000 piecesExport ratio 100%

Company facts

Anh Quoc was established in 2009. The company posted total revenue of $500,000 last year.

The entire output in the line is exported. France is the primary market, accounting for 60 percent of shipments. The rest is sent to Italy and Hungary.

One-third of orders are under OEM basis.

More than one-half of turnover in the line is composed of garden and outdoor models, including benches and lounges. Aside from furniture, the supplier manufactures ceramic-, table- and dinnerware.

Anh Quoc targets the low-end and midrange price segments. A 76x56x87cm acacia or eucalyptus wood tea trolley is available for $30 to $40. Bedroom sets consisting of rubberwood beds, chests and dressers can reach $700.

The materials used are oak, acacia, eucalyptus and rubberwood, bamboo, natural and synthetic rattan, seagrass, and water hyacinth. They are sourced

from Ho Chi Minh City and the provinces of Binh Duong, Dong Nai and Quy Nhon.

A designer creates models according to customers’ specifications. Sampling time is one or two weeks.

The company operates a 50,000sqm factory in Bien Hoa district of Dong Nai. The supplier subcontracts some production processes to facilities in Binh Duong, Hai Duong and Binh Dinh provinces, and Ho Chi Minh City.

The plant can manufacture 30,000 pieces every month. The average monthly output is 27,000 pieces.

There are 250 permanent employees. An additional 300 part-time workers are hired during the peak season of September to April. Eight inspectors check all finished items.

Cartons are normally used as packaging. The MOQ is one TEU. Delivery takes 30 to 45 days.

Anh Quoc plans to expand its market presence in the EU over year ahead.

Year established 2009Head offi ce location District 12 (Ho Chi Minh City)Ownership Locally ownedFactory location(s) Bien Hoa (Dong Nai)Full-time employees 250Part-time employees 300Total annual sales (all products) $500,000

Sales & output: Wooden & wicker furniture

Materials used Wood YesBamboo YesRattan YesPlastic YesOther Yes

Exports by product Living room furniture 15%Bedroom furniture 20%Dining & kitchen furniture 15%Garden & outdoor furniture 50%

Exports by market North America –EU 100%Europe (non-EU) –Asia-Pacific –Middle East –Other –

Business contactNGUYEN Quoc TriPhone(84-8) 3891-6904Fax(84-8) 3715-0165E-mailinfo@anhquoctrade.comtri.nguyen@anhquoctrade.comURLwww.anhquoctrade.comAddress12CH-04 Thai An Apartment, 1A National Road, Trung My Tay, District 12, Ho Chi Minh City, Vietnam

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www.ChinaSourcingReports.com 27

Supplier Profile Executive Sum-Supplier Profiles

Popular export models

Model: AQ12021MOQ: 50 piecesPackaging: CartonDelivery: 45 daysPrice: $90 to $110Description: Nightstand; oak; natural color; 50x44x60cm

Model: AQ12034-BMOQ: 50 piecesPackaging: CartonDelivery: 45 daysPrice: $180 to $200Description: Nightstand; rubberwood; dark brown; 168x48x102cm

Model: AQ12014MOQ: 20 setsPackaging: CartonDelivery: 45 daysPrice: $140 to $170Description: Dining furniture set; five pieces; oak; leather upholstery; natural color; 120x80x75cm table and four 46x53x104cm chairs

Model: AQ12034MOQ: 50 piecesPackaging: CartonDelivery: 45 daysPrice: $230 to $260Description: Bed; rubberwood; dark brown; 200x160x135cm

Model: AQ12020MOQ: 50 piecesPackaging: CartonDelivery: 45 daysPrice: $70 to $80Description: Nightstand; oak; natural color; 50x44x60cm

Model: AQ12019MOQ: 50 piecesPackaging: CartonDelivery: 45 daysPrice: $50 to $60Description: Nightstand; oak; natural color; 50x44x60cm

le ppll

eand; oak; natural color; tural color;

Model:del: AQ120341203MOQ:Q: 50 pieces50 piecePackaging:ging: CartonCDelivery:D 45 daPrice:P $230Desc2

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